Brooks 2012 Communicating With IRS

NAECommunicating WithThe IRSA9/6/2012LG Brooks, EAAugust 2012Internal Revenue ServiceIRS GuideWire @ www.irs.gov IRS.doing business with the Internal RevenueService IRS Leadership Team IRS ini YourYStateSt t Stakeholder Relationship Management Wage and Investment Income Small Business and Self Employed Large & Mid-Sized Business Tax Exempt and Government Entities1

9/6/2012Taxpayer Rights CornerIRS GuideWire at http://www.irs.gov/advocateNAETaxpayer Rights CornerIRS GuideWireA Whether your clients file Form 1040EZ or acomplicated corporate return, they will benefit fromg their rightsgp y and beingg familiarknowingas a taxpayerwith the IRS' obligations to protect them. The goal ofthe Taxpayer Rights Corner is to be your one-stopshop for taxpayer rights information during everystep of your interaction with the IRS. Know Your Rights You have rights as a taxpayer when dealingwith the IRS. PublicationP bli ti 11, YourYRiRightsht as a TTaxpayer Protecting Taxpayer Rights, Fact Sheet The Taxpayer Bill of Rights 2, as passed byCongress Taxpayer Bill of Rights II, IRS TrainingPublicationImportant Taxpayer Rights Protection of Your RightsPrivacy and ConfidentialityProfessional and Courteous ServiceRepresentationPayment of Only the Correct Amount of TaxHelp With Unresolved Tax ProblemsAppeals and Judicial ReviewRelief From Certain Penalties and Interest2

9/6/2012Taxpayer RightsLevels of Authority Anyone Receive Info From IRS Anyone withauthorizationNAE Provide Info to IRSA Know Your Rights Know Your Client’s Rights You are entitled to have your rightsexplained and protected Represent t/p with Exam Represent t/p withAppeals, Collection, signconsents, waivers, andagreements Enrolled and UnenrolledPreparer Enrolled only: CPA, EA,and AttorneyLevels of Authority Provide Info to IRS Receive Info From IRS Forms 2848, 8821, OTIA,8453, 1040 Checkbox Forms 2848, 8821, 8453,OTIA, 1040 Checkbox 2848 Represent t/p with Exam 2848 Represent t/p withAppeals, Collection Sign consents, waivers,and agreements 28483

9/6/2012Third Party AuthorizationLevels of AuthorityMaximum levels of authority for individuals designated by the taxpayer tocommunicate with the IRS on their behalf.Practitioners(EA/CPA/JD)& FamilyUnenrolledReturnPreparersIRS e-fileProvidersFriendsProvidethe IRSP id iinformationfti tto thYESYESYESYESReceive tax informationYESYESYESYESRepresent T/P with ExamYESYESNONORepresent T/P with Appealsand/or CollectionSign Third Party AuthorizationLevel of Authority Permitted by Various FormsForm2848POAForm8821TIAForm8453 e-fileReturnForm1040CheckboxProvide information to the IRSYESYESYESYESReceive tax informationYESYESYESYESRepresent T/P with ExamYESNONONORepresent T/P with Appeals and/orCollectionYESNONONOSign tion of AuthorityADescription of AuthorityThird Party Designee Checkbox Authorizes the IRS to call the designee to answer any questions thatmay arise during the processing of the return, and authorizing thedesignee to: give the IRS any information that is missing from the return, call the IRS for information about the processing of the return or thestatus of refunds or payment(s), and4

9/6/2012Third Party DesigneeCheckbox, continued Respond to certain IRS notices that the taxpayer shares with thedesignee about math errors, offsets, and return preparation. Thenotices will not be sent to the designee.NAEOral Tax InformationAuthorizations/Disclosure ConsentsA This limited authorization does not authorize the designee to receiveany refund check, bind the taxpayer to anything (including anyadditional tax liability), or otherwise represent them before the IRS. In certain circumstances, the IRS can accept oral authorization fromtaxpayers to discuss their confidential tax return information with a third party. If a third party is present at an interview with the IRS or if a third party isinvolved in a telephone conversation with the IRS, the IRS can discloseconfidential tax return information to that third party after confirming thetaxpayers’ identity and the identity of the third party. IRS will confirm the issue or matters to be discussed to enable the third partyto assist and determine what confidential tax return information the IRSneeds to disclose. In order to establish the oral disclosure consent, the taxpayer must havereceived a notice from IRS and have open account issues.Centralization ofPowers of Attorney & Other Authorizations CAF is the acronym for Centralized Authorization File.CAF contains information on third parties who areauthorized to represent taxpayers before the IRSand/or receive and inspect confidential taxpayerinformation. Fax your Forms 2848 or 8821 to: Memphis, TN: (855)214-7519(Expiring fax # 901-546-4115) Ogden, UT: (855) 214-7522(Expiring fax # 801-620-4249)Both “expiring fax #’s” are valid to October 1, 20125

9/6/2012Employer Identification Number (EIN)Improved Process One toll-free number: 1-866-816-2065 Available Monday through Friday, from 7:30am to 5:30pmcustomer's local time. Alaska and Hawaii will need to use PacificTime zone for their calls.NAEEIN Improved Process, continuedA Complete the new "Third Party Designee" section of Form SS-4and obtain the client's signature prior to making your call. IRSno longer requires a Form 2848 or Form 8821, to get an EIN foryour clients. Your calls will be routed based on your area code. The IRS Campus' accepting faxed applications are: Brookhaven, NY (631) 447-4991 Cincinnati,Cincinnati OH (859) 669669-57605760 Philadelphia, PA (215) 516-3990Practitioner Priority Services Practitioners' first point of contact foraccount-related issues. ContactC t t ttollll ffree att 11-866-860-4259866 860 4259 8:00 a.m. to 8:00 p.m. local time, weekdays6

9/6/2012Practitioner Priority ServicesNAEPractitioner Priority ServicesContact if your inquiry deals with thefollowing issues:A Operates out of the five campus sites:o Brookhaven, NYo Cincinnati, OHo Memphis, TNo Ogden,Ogden UTo Philadelphia, PA Calls are routed to a designated site based on the practitioner'sarea code. Each site handles both individual and business inquiries. Missing or misapplied payments Transferring credits or payments Refund inquiries Outstanding liability balances Penalty information Account adjustment statusPractitioner Priority Services(Continued) FUTA/State Reconciliation Matching Program Installment Agreements for individual taxpayers only--notalready in collection and under 15,000 Records of Accounts (ROA) generally limited to three taxperiods; or use form 4506 Income information is generally limited to three tax periodsand is often ordered from an off-line system; or use form45067

9/6/2012Issues resolved by ServiceCenters or Business UnitsLiens and LeviesOffers in CompromiseCivil PenaltiesUnderreporter CasesUnder-reporterBankruptcies - Pub. 908Examination/Collection CasesSubstitute for Return Cases (SFR)NAEChecklist for Communicatingwith Service CentersA Have proof of Power of AttorneyWritten response required?Send Copies of Original DocumentsCopy all NoticesFile Copies of All CorrespondenceObtain Copies of All Notices from ClientsCC Client on All CorrespondenceChecklist for Communicatingwith Service Centers (continued) Respond using return envelopes provided by IRS ifpossible Notify Service Center if you change your address Follow-upp on Correspondencep Make a note of the IRS Employees that assist you, andkeep a list of helpful contacts8

9/6/2012Issues that can be Resolved viaTelephoneNAEIssues that can be Resolved viaTelephone (continued)A Refund Inquiries SSN and Exemption Issues Allowance of items claimed on the original tax return (withsubstantiation)) Form 2210 estimated tax penalty (with back up) Missing or unapplied payments, or credits Credit transfers (with faxed backup) Status of claims, e.g., amended returns, carry-backs,injured spouse requests Transcriptp requests,qe.g.,g record of account, return pprint Copy of examination report or CP 2000 Math errorsIssues that can be Resolved viaTelephone (continued) Earned Income Tax Credit issues Installment arrangements for certain accounts meetingphone criteria9

9/6/2012Issues that Require WrittenCorrespondenceMost payment tracer issuesExamination reconsideration requestsItems not claimed on original returnForm 3911, Taxpayer Statement Regarding RefundBackup withholdingOpen examinations (audits)NAEIssues that Require WrittenCorrespondence (continued)A Injured spouse claims (original) Application for Individual Taxpayer Identification Number(ITIN) Installment agreementsgbyyppayrollydeduction or directdebit Non-filer cases Bankruptcy issuesIssues that Require WrittenCorrespondence (continued) Most requests for penalty removal All requests for interest removal (Form 843 Claims)10

9/6/2012Be Fully PreparedValid POA’sTax return informationCopies of noticesCopies of cancelled checksCopy of EITC worksheetCorrect Social Security NumbersDirect faxes to specific Customer ServiceRepresentativesNAETaxpayer Advocate Service:What you can ExpectA A “fresh look” at your problemTimely acknowledgmentA contact person assigned to your caseUpdates on progressTime frames for actionSpeedy resolutionCourteous ServiceUse the Taxpayer Advocate Servicefor: Significant hardshipImmediate threat of adverse actionSignificant costIrreparable injury or long-termlong term adversityDelay of over 30 days on tax-related issuesNo response or resolution by the IRSIRS system or procedure failure/inadequacy11

9/6/2012Taxpayer Assistance Orders:Significant HardshipDisabilityEvictionMedical hardshipUtility disconnectVehicle repossessionWelfareNAEContacting theTaxpayer Advocate ServiceA Call TAS toll free at 1-877-777-4778 or TTY/TTD 1-800829-4059 Call IRS toll free at 1-800-829-1040 and request TaxpayerAdvocate Service Call write or visit local Taxpayer Advocate Complete and submit Form 911-Application for TaxpayerAssistance OrderProviding Information to theTaxpayer Advocate Taxpayer’s name, address and SSN or EINType of tax return and year(s) involvedPower of AttorneyPrevious attempts to solve the problem, copies of notices,correspondence, etc. Description of problem or hardship and be prepared tovalidate the situation! Copies of cancelled checks, or other necessarydocumentation12

9/6/2012Systematic Advocacy ManagementSystem (SAMS)The National Taxpayer Advocate Service has requestedinput regarding exam and collection personnel that maybe considered in violation of the IRM and othermandatory policies and procedures. Practitioners arerequestedbySAMS viat d tot elevatelt any issueib accessingiiwww.irs.gov. You should submit your issue via Form14411 (obtained the IRS website). Form 14411 can befaxed to (202) 622-3125 for consideration or filed online.NAEAAlso refer to Publication 4825, “Ten Things to KnowAbout the Taxpayer’s Advocate Service & Seven Thingsto Know About Systemic Advocacy”Communicating WithThe IRSLG Brooks,Bk tNTPI 201213

Taxpayer Rights Corner IRS GuideWire Know Your Rights You have rights as a taxpayer when dealing with the IRS. Pbli ti 1Publication 1, YRiht TYour Rights as a Taxpayer Protecting Taxpayer Rights , Fact Sheet The Taxpayer Bill of Rights 2, as passed by Congress Taxpayer Bill of Rights II, IRS Training Publication